The High 5 trading technique

The technique is one of those that I traded many years ago with success and came upon recently
as I reviewed a very old notebook.

The technique uses 4 moving averages:

1. A 89 simple average of the close

2. A 21 ema of the close
3. A 5 period ema of the high of the bar
4. A 5 period ema of the low of the bar

Rules for a buy

1. The 21 e is above the 89s

2. Both the 5e of the high (5eH) and the 5eL are above the 21e
3. The market pulls back to the level of the 5eL. At this level just simply BUY with a tight stop loss.
4. Base your stop loss on research. Euro Dollar stop is around 15 points.
5. Exit ½ of the position at a profit of 10 points and bring the stop to entry.
6. Look to exit the second half at plus 25 points. Here I think it’s useful to look at the general technical
situation. If the trade is with the trend from the hourly and 4-hour charts the trade can be low risk
entry point preceding a much larger move.

Rules for a sell

The rules for sells are exactly the opposite the rules for “buy”.

The 21 ema is below the 89 sma.

Both the 5eL and the 5eH are below the 21 ema.

Sell at rally to the 5eH.

Exit as for Buys.

Just keep taking the trades..

David Paul
FOLLOW UP EXAMPLES IN EURO DOLLAR – 15MIN CHART